Federal Board of Revenue (FBR) has made the conclusion to evaluate its decision of imposing Rs. 1000 tax on mobile phones which it required in the first week of Apr 2013.
According to latest reviews, a conference between FBR authorities and associates of cellphone industry on Wed led to a little success as the revenue authority confident them of examining the lately imposed tax rate on mobile phones in Pakistan.According to SRO 280, dated Apr 4, all mobile phones that land in Pakistan are subject to Rs. 1000 additional tax whereas Rs. 500 was required on all other mobile phones which do not come under the umbrella of mobile phones.
The measure poorly hit the cellphone import in Pakistan which depend mostly on lower end or ultra-low cost mobile phones as a major factor to the total monthly import. Not only the import figure came down but smuggling of mobile phones increased during the reported interval.Mobile phone suppliers have been setting up demonstration all over the country over this serious tax framework.
FBR authorities have suggested that the authority will consider decreasing Rs. 1000 tax to Rs. 700 on mobile mobile phones and Rs. 500 would be brought down to Rs. 350 – 400 in the upcoming budget.The revenue authority is already experiencing serious difficulties due to large reshuffling of FBR authorities on the basis of personal preference and disliking.It if terrifying that a targeted revenue of Rs. 2.05 trillion for the season 2012-13 will not be obtained due to inner rifts and uncertain situation. In first 15 days of May, the authority dropped short of revenue as it gathered Rs. 42.3 billion in taxes, a 19.4% less restoration over the same interval in May last season.
Tax on cellphone industry was a measure to make the situation a little positive and now, only the upcoming budget will validate that how lately chosen government of PML-N will deal with the issue.
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